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Can the goverment do anything to avoid another recession?

As the current recession was caused by the subprime lenders and collateralized debt obligations and so on. What can the goverment to avoid another recession?

Asked By: - 8/24/2009
Best Answer - Chosen by Asker
The government cannot do anything to prevent any recession. The belief that it can is the fundamental fallacy of 20th century economics... More
Answered By: mtlmnr49 - 8/24/2009
Additional Answers (8)
the current recession began from things that started happening under reagan.
Answered By: short and to the point - 8/24/2009
 
Actually, this and every recession has its roots in Herbert Hoover's presidency, when he started the policies that were continued and enlarged by FDR to become the New Deal. Since that time, government has taken on more and more obligations for which it has a) no Constitutional authority and b) no money. In addition... More
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Answered By: hammy - 8/24/2009
 
Only if they stay out of the free market. Stop putting so many regulations on companies of all kinds. Shrink the size of the government and lower the taxes on the people. We will see another round of economic recession next spring due to another round of mortgage ARMs coming due thanks to Barney Frank and co... More
Answered By: the rick - 8/24/2009
 
By conventional wisdom, the housing bubble, credit crisis and collapse in consumer spending caused the recession... More
Answered By: Amber Rose - 8/24/2009
 
Why would they want to avoid another recession? the people who are behind the government make an absolute fortune from it and that is why they are planned in the first place.
Source(s):
Answered By: ordoabchao2100 - 8/24/2009
 
I don't think our current (UK) government is capable of anything. I even consider it incapable of organising a party for inebriates in an ale production facility.
Answered By: David W - 8/24/2009
 
It would help if they would call a General Election.
Source(s):
Answered By: Lorne - 8/25/2009
 
No. All any government can ever do is affect the time between growth and recession. This is because the economic cycle cannot every sustain continual growth; it is impossible to do so. There will always be a tipping point where an economy can grow no further and drops into first recession, then depression, recovery... More
Answered By: Beastie - 8/26/2009
 
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